Rented-home insurance rates to rise over three years

Published: Tuesday, November 27, 2012 at 5:05 p.m.

Last Modified: Tuesday, November 27, 2012 at 5:05 p.m.

If you own a home and rent it out, your property insurance will be going up over the next three years.

N.C. Insurance Commissioner Wayne Goodwin has signed a settlement agreement with the insurance companies that allows for a statewide average increase of 13.2 percent for so-called dwelling fire and extended coverage policies over a three-year period.

Dwelling policies are not the same as homeowner policies. They cover homes and small apartment buildings that are not owner-occupied and are rented out. Such properties are not eligible for homeowner insurance.

As with other property insurance, however, the coastal areas will see the biggest increases.

The Insurance Department gave examples of the cost of coverage based on a frame dwelling valued at $50,000 with contents of $10,000.

For beaches in New Hanover, Brunswick, Pender and Onslow counties, the new total fire and extended coverage premium would be $733 – a 24.8 percent increase by March 2015 from $587 now.

For the mainland portions of those four counties, the premium would be $496 – up 18.3 percent from $419.

By comparison, the premium in Charlotte would actually fall, to $193 in March 2015 from $198 now. In the Triangle area, premiums would fall to $235 from $240.

The insurance companies, represented by the N.C. Rate Bureau, had in January 2011 sought an increase of 20.5 percent, varying by coverage and geographical territory.

<p>If you own a home and rent it out, your property insurance will be going up over the next three years.</p><p>N.C. Insurance Commissioner Wayne Goodwin has signed a settlement agreement with the insurance companies that allows for a statewide average increase of 13.2 percent for so-called dwelling fire and extended coverage policies over a three-year period.</p><p>Dwelling policies are not the same as homeowner policies. They cover homes and small apartment buildings that are not owner-occupied and are rented out. Such properties are not eligible for homeowner insurance.</p><p>As with other property insurance, however, the coastal areas will see the biggest increases.</p><p>The Insurance Department gave examples of the cost of coverage based on a frame dwelling valued at $50,000 with contents of $10,000. </p><p>For beaches in New Hanover, Brunswick, Pender and Onslow counties, the new total fire and extended coverage premium would be $733 – a 24.8 percent increase by March 2015 from $587 now.</p><p>For the mainland portions of those four counties, the premium would be $496 – up 18.3 percent from $419. </p><p>By comparison, the premium in Charlotte would actually fall, to $193 in March 2015 from $198 now. In the Triangle area, premiums would fall to $235 from $240. </p><p>The insurance companies, represented by the N.C. Rate Bureau, had in January 2011 sought an increase of 20.5 percent, varying by coverage and geographical territory.</p><p><a href="http://www.starnewsonline.com/section/topic99"><b>Wayne Faulkner</b></a>: 343-2329</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @bizniznews</p>